Posted inFund Flows

China attracts net equity inflows during Q4

The inflows came in response to China's shift in policy on Covid-19.
terraced fields at yunnan china.adobe rgb 1998 use...........

Equity funds and ETFs in China drew more than $25bn in net flows during the fourth quarter, Broadridge data show, as sentiment improved in the wake of the country’s reopening.

Equity ETFs accounted for about 80% of total stock fund net sales during the fourth quarter at $20bn, increasing full-year net inflows to $65bn.

In contrast, the change in the country’s Covid-19 policy and expectations of more government stimulus measures had a negative impact on fixed income.

Bond funds, which had witnessed six consecutive quarters of net inflows, saw net outflows of $81bn during the fourth quarter.

Meanwhile, mixed asset and multi-asset funds continued to see net outflows at $9bn during the fourth quarter as well.

Broad market and thematic ETFs continued to dominate the best-selling equity fund list during the fourth quarter, accounting for $11.8bn in net inflows across the top six ETFs, all of which were existing fund products.

The largest ETFs in these two respective categories, Huatai-PineBridge CSI 300 ETF and ChinaAMC SSE Science and Technology Innovation Board 50 Index ETF, accounted for more than half of the total net inflows.

In contrast, new fund launches in the fourth quarter accounted for five out of the six best-selling fixed-income funds during the quarter, with combined net sales of US$5.8bn.

Part of the Mark Allen Group.